Sensex Sheds Over 200 Points, Nifty Below 11,300; Metal Stocks In The Red
The domestic stock markets started Thursday's trading session on a negative note after the US Federal Reserve maintained status quo on key rates and the Reserve Bank of India hiked the repo rate to 6.5 per cent. The 30-share Sensex opened at 37,529.69 while the Nifty50 at 11,328.90. By 9:38 am, the Sensex lost 208.38 points or 0.56 per cent to trade at 37,313.24 while the broader Nifty50 was below the crucial level of 11,300 at 11,289.65, with a loss of 56.55 points or 0.50 per cent.
"The 25 basis points rate hike by RBI was in line with expectations but the market took it in a negative way. This indicates that the consolidation which was seen in the yesterday's market seems to be in continuation even today," said Ritesh Ashar, Chief Strategy Officer, KIFS Trade Capital.
Vedanta (down 2.29 per cent), Tata Steel (down 2.29 per cent), Tata Motors (down 2.29 per cent), Mahindra and Mahindra (down 2.29 per cent), and HDFC (down 2.29 per cent) were the top laggards in the Sensex pack.
The Nifty Metal index lost 1.47 per cent, followed by Nifty PSU Bank index, which was down 1.24 per cent.
Meanwhile, Asian stocks dropped as the latest escalation in the Sino-US trade war hit Chinese shares, while global bond markets were rattled by increased borrowing by Washington and Japan's new tolerance for higher yields, according to a report by news agency Reuters. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.8 per cent and Japan's Nikkei declined 0.4 per cent.
Overnight on Wall Street, the S&P 500 lost 0.10 per cent, but the Nasdaq Composite added 0.46 per cent to extend its recovery from Monday's three-week low.
The Federal Reserve kept interest rates unchanged on Wednesday but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.
On Wednesday, the Sensex slipped 84.96 points to 37,521.62 while the Nifty50 index settled 10.30 points lower at 11,346.20. (With Agencies Inputs)
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